Professional Documents
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MFCA exists because of a need in controlling the flow and stock of materials both physically and monetary of the company. MFCA is present
to improve the efficiency of material use in manufacturing companies, in order to minimize energy and costs used to reduce the waste material
remaining. MFCA includes three concepts, there is: first material cost, is the physical amount of material used in the production process such as the
purchase price, second system cost, is a system that handles reduce labor costs and maintenance costs in the company, and then third is waste costs,
is costs incurred by the company because of the remaining of positive and negative goods form waste water, energy, and emissions as a result of the
production process.
In this case material is the main focus in applying MFCA, then the cost system is tasked with regulating and tracking all material inputs and
outputs in the production process so later the company can know the costs shouldn’t spent in production process, regarding raw material inputs are
converted into products, and losses are generated through monetary calculations.
MFCA has a relationship with environmental accounting in terms of calculation and decision making regarding residual production materials
can damage the environment. So we conclude that the aims of MFCA is to save production costs and reduce residual waste from production which
has a negative impact on the environment simultaneously.
QC1: Balance, because the material before and after mixing process have same total quantity with mixed material, resin, and pigment bag. But actually if
we calculate form cost accounting the defferences is 1 kg from mixed material, we analyze that differences from resin and pigment bag, because the
company use the resin and pigment bag not pipe resin and pigment.
For the furher action: the company must be make an agreement with the supplier use the pipe resin and pigment, so the material not clot in resin and pigment
bag .
QC2: Not balance, because the mixed material before and after injection process don’t have same total quantity, regarding from the data mixed material
before injection process is 109kg, but after injection process the output is 69kg through some process to be plastic part. Because of that process the total
of plastic part become 68kg. we analyze that the material waste in set up reject, reject injection, and runner.
For the furher action, we can recycle that material fromset up reject ,and set up project.
QC3: Balance, because the plastic part before and after packing process have same total quantity with packed work in process, and during the packing
process there is no value added for that material.
QC4: Not balance, the result of the inspection 68 but the finished goods is 65. We analyze that pocked WIP wasted in reject part and QC sample .
For the furher action, recycle that rejected product and QC sample after that sample is not used again.
4. Cost Calculation Model
Recommendation based on fundings from completed cost calculation model